Toyota to Build $600M Plant in Brazil to Produce New Small Car

Toyota Motor (TM) said Thursday it plans to spend $600 million to build a third plant in Sao Paulo, Brazil, where it will build a new small car.

Construction of the plant, to be located in Sorocaba, will begin in September and eventually employ about 1,500 workers, the automaker said in a statement. Production is expected to begin in the second half of 2012. Toyota will initially build 70,000 cars for the local market, but plans also call for export production, it said.

The car to be produced, still under development, is aimed at emerging markets. It will share underpinnings with the entry-level Etios model to go on sale this year in India, Reuters reported.

Toyota purchased the land for the planned plant in July 2008, the company said. It is the world's largest automaker's third plant in Brazil. It also produces vehicle parts in Sao Bernardo and its Corolla compact car at a plant in Indaiatuba, both in the state of Sao Paulo.